The most critical business transactions require a large amount of information to be examined and quickly shared. The sensitive information can end up destroying a deal or cost a company valuable revenue and market share when it is in the wrong hand. It is crucial to ensure that only the correct individuals have access to the information at all times. This is the reason a virtual data space can come in handy. A virtual data room (VDR) can help streamline due diligence and M&A processes, while also protecting confidential data.
A VDR is an online repository that stores business-critical files securely and allows restricted access to internal and external stakeholders. It can also help reduce the risks of file sharing that is not authorized by offering security-first features such as multi-factor authentication, session timeouts, document-level permissions, watermarking and view-only modes, screenshot blocking, and detailed activity reports. A VDR can be an ideal solution for M&A due diligence as well as other high-stakes deals.
VDR providers differ in terms price the ease of use, as well as features. Businesses should choose one that provides a central repository with flexible permissions for data, thorough activity reports, and customizable metadata. They should also provide security certificates and support which help ensure the integrity in case in the event of an accident.
The most popular providers are Datasite, RR Donnelley, and Intralinks. Each of them offers a comprehensive set of features and specialized additional resources M&A tools However, their pricing varies. In the lower cost tier there are companies like Digify that provide basic functionality with a complicated pricing policy.